A nonvalue-adding activity is defined as a(n)
A)administrative or support activity that adds overhead cost to the product and increases its market value.
B)activity that adds cost to a product but does not increase its market value.
C)activity that adds no cost to the product but increases its market value.
D)wasteful but unavoidable production activity.

Question

Quizplus · Accepted Answer

Nonvalue-adding activities are activities that add cost to the product but do not increase its market value. They are considered wasteful and should be minimized or eliminated to improve efficiency and reduce costs. Examples of nonvalue-adding activities include overproduction, excess inventory, unnecessary movement of goods, and defects or rework.

A Nonvalue-Adding Activity Is Defined as A(n)